Andalusia Mayor proposes sales tax increase - WSFA.com Montgomery Alabama news.

Andalusia Mayor proposes sales tax increase

Posted: Updated:
ANDALUSIA, AL (WSFA) -

Andalusia Mayor Earl Johnson is proposing an increase in the city's sales tax from 2% to 3.5%, which would bring  the total sales tax consumers pay in the city to 9.5%. The money would be used for infrastructure improvements, education and retiring debt.

The city received at $8.6 million ATRIP grant for improvements to South Three Notch Street, but has to come up with $2.5 million in matching funds. The mayor believes the sales tax increase is the best way to raise the revenue.

"We could borrow the money which would add to our indebtedness or raise the sales tax to the state's average, which would enable us to raise the money as we go, and allow us to start paying our debt down, which I think is a win, win for everyone," Johnson said.

0.5 percent of the increase would be earmarked for Andalusia City Schools, for help with a $6.5 million project to construct a junior high school on the high school campus and a new building for sixth graders at the Andalusia Elementary School campus.

The city council could vote on the plan as soon as May 21st.

Copyright 2013 WSFA 12 News.  All rights reserved.

Powered by WorldNow